Deals

Telefonica, Liberty to Weigh O2, Virgin Merger in U.K

  • Potential deal would unite O2 wireless unit and Virgin Media
  • Companies could announce transaction as early as next week

Telefonica-Diagonal Zero tower offices in Barcelona.

Photographer: David Ramos/Bloomberg

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Telefonica SA and billionaire John Malone’s Liberty Global Plc are exploring a combination of their U.K. operations, people with knowledge of the matter said, in a deal that would reshape the British telecommunications industry.

The companies are discussing bringing together Telefonica’s O2 wireless unit and Liberty Global’s Virgin Media business, according to the people, who asked not to be identified because the information is private. If they reach an agreement, a transaction could be announced as soon as next week, the people said.